NEST mandatory for small employers from 2010
CATEGORY: PAYROLL UPDATE | POSTED: 05 Nov 2010

 

From 2012 employers will have to auto-enrol employees into a pension scheme.

As part of this change in legislation, NEST has been introduced as a “default” scheme that can be used by employers with no suitable alternative in place.

NEST stands for “National Employee Savings Trust”.

NEST is a defined contribution scheme with a limited investment choice.

Contributions will be invested into a default fund and those that do not make any investments choice(s) will remain in this fund.

Transfers in or out of NEST will not be allowed.

NEST will make a charge of 2% of all contributions plus an investment management charge of 0.3% of the value of the fund(s).

The annual contribution limit will be £3,600. NEST is aimed at low to moderate earners and will launch in Spring 2011.

For more information on how NEST affects your visit this site

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